I've been in this for years, and I can tell you that PnL is literally what separates those who know what PnL in trading is from those who are just playing in the market.

Many novice traders believe that the goal is to win on every trade. Wrong. I had that mindset at first too, and it was a disaster. The reality is that no one wins all the time, but what matters is that your profits end up being larger than your losses when you look at the big picture.

PnL, or profit and loss, is your compass. It shows you exactly how much you gained or lost on each move, each day, each week. Without a clear understanding of this metric, you're trading blindly. It's that simple.

The interesting part is that many traders don’t understand that controlling PnL is not just a number. It’s your feedback system. Every time you review your PnL, you’re really measuring whether your strategy works or if you need to make adjustments. It’s the difference between an amateur trader losing money without learning anything and a professional who learns from every move.

The part that fewer people understand is that what is PnL in trading is not just about knowing how to calculate gains and losses. It’s about having the discipline to analyze why you won or lost. Was it luck? Was it your strategy? Was it an execution error? That’s what takes you to the next level.

My advice after years: obsess over managing your risk from day one. That’s what will truly set you apart. PnL is your evidence that you’re improving.